Forestry and the Emissions Trading Scheme

NZ Greenhouse Gas Inventory

New Zealand’s latest Greenhouse Gas Inventory report shows that gross emissions rose 2.2% between 2016 and 2017, and 23.1% since 1990. Net emissions (which factor the impact of land use, land-use change and Forestry (LULUCF) have increased 64.9%, showing that land-use change has had a significant influence.

This is further illustrated by the fact the LULUCF sector offset 29.6% of gross emission in 2017, while this number was closer to 50% in 1990. The report also notes that an estimated 6,536 hectares of new forest was planted in 2017, while 4,007 hectares was deforested.

The inventory “shows why we need the kind of clear policies and actions the Government’s proposing on climate change” according to Minister for Climate Change James Shaw.

Price update

NZU prices spent much of April trading around $25.60, before coming off slightly at the end of the month. The beginning of May has seen prices dip to around $25.40, possibly due to emitters finalising their requirements for this year’s surrender deadline of 31 May.

European Carbon price jumped to an 11-year high in April, trading over €27.00 at times. Prices have backed off slightly at the end of the month to close April at around €26.00.